Horrible Thought for the Day

1. Horrible Thought for the Day Did you ever notice that when you put the two words “The" and "IRS" together it spells "THEIRS"?

2. Course Resources

3. Course Resources Text book My Web Page MSTC Educator Web site

4. INCOME TAX ACCOUNTING • Who must pay income taxes? • What things are taxable? • What is not taxable? • What is the income tax rate? • How are taxes paid? • What are income taxes used for?

5. ONE GOOD REASON TO WISH YOU LIVED IN 1917 • The top Federal tax bracket was 7% • Today’s top is ??? • Federal income tax was first introduced as an amendment to the U.S. Constitution • Which amendment is this? • In 1913 married couples’ incomes of $4,000 to $20,000 were taxed a flat 1% • Today’s rate for this group is ???%

6. 1913 Only 357,598 personal income tax returns were filed 2006 135,901,700 personal tax returns were submitted Over 74 million were submitted electronically TAX TRIVIA

7. 1913 According to the 1910 census, the U.S. population was 91,972,266 only .3% of the population made enough money to be taxed 2006 The current population is ??? 44% of today’s population pays taxes Overall average tax is 12.1% of adjusted gross income TAX TRIVIA

8. 1913 Only five households made more than $1 million Tax collected was $35 million In 1934--$420 million 2006 1 out of every 500 have income over $1 million Tax collections totaled $966,877,000,000 1,552,000 returns reported gambling income of $18,745,000 TAX TRIVIA

9. 1913 Before income tax, the government relied on import taxes and “sin” taxes on alcohol and tobacco Only 10% of the government’s revenue came from the income tax 2006 101,208,000 refunds were issued 49% were electronic Total refunds were $229.1 billion Average refund was $2,264 TAX TRIVIA

10. Tax Trivia • Gross Federal Debt • 1940 • $50,696 million • 2006 • $8,707,627 million

11. Tax Trivia • The top 50% of income earners • Paid 96% of all Federal tax • The top 1% of income earners • Paid 30% of all Federal tax

12. Tax Trivia • States with no state income tax: • Florida • Nevada • South Dakota • Texas • Wyoming • Washington D.C.

13. IRS Web sites • Student Homepage • IRS Warns of e-Mail Scam about Tax Refunds • Tax Information for Individuals • Internal Revenue Service

14. WISCONSIN INCOME TAX • First state to adopt a successful income tax • Tax enacted in 1911, collecting $1.6 million • Tax was distributed 70% to local towns, 20% to counties, 10% to state • 2003 A.G.I--$109,876,610,000 • Per return = $40,654

15. WISCONSIN INCOME TAX • $3.726 billion in taxes collected • which represents $10.8 million per day • Income tax represents 50% of total state taxes • 2.9 million tax returns filed in 2004 • 2.3 million refunds issued • representing 3.5 million people of total population of 5. million • 50% of tax returns were single filers • 70% of returns were the long form • Collection of income taxes are expected to rise approximately 6% this year

16. Tax Forms • Most Public Libraries • www.irs.gov

17. WIS Tax Web sites • Wisconsin Department of Revenue Home • Individuals - Wisconsin Department of Revenue